Abstract: We have designed and constructed a ``dispersed Fourier Transform
Spectrometer'' (dFTS), consisting of a conventional FTS followed by a grating
spectrometer. By combining these two devices, we negate a substantial fraction
of the sensitivity disadvantage of a conventional FTS for high resolution,
broadband, optical spectroscopy, while preserving many of the advantages
inherent to interferometric spectrometers. In addition, we have implemented a
simple and inexpensive laser metrology system, which enables very precise
calibration of the interferometer wavelength scale. The fusion of
interferometric and dispersive technologies with a laser metrology system
yields an instrument well-suited to stellar spectroscopy, velocimetry, and
extrasolar planet detection, which is competitive with existing
high-resolution, high accuracy stellar spectrometers. In this paper, we
describe the design of our prototype dFTS, explain the algorithm we use to
efficiently reconstruct a broadband spectrum from a sequence of narrowband
interferograms, and present initial observations and resulting velocimetry of
stellar targets.